CUA Personal Loans
Providing financial and insurance products to more than 500,000 Australians, CUA is the country’s largest credit union. Credit unions like CUA are member-owned, which means they are run in a different way to traditional banks. How so? First and foremost, traditional banks are run to benefit external shareholders, who expect something back on their investment. As a result, traditional banks have to keep a strong focus on profits.
Meanwhile, credit unions like CUA are owned by their members – and each and every member is a shareholder. So, while both banks and credit unions are run to benefit their shareholders, bank shareholders are on the outside, while credit union shareholders are on the inside. That means everything the credit union does, it does to benefit its members.
Becoming a member of a credit union such as CUA can offer any number of benefits. As an example, as a member and shareholder of CUA, you have a voice that can shape the way the credit union is run. Perhaps most appealing of all however, is the fact that as profits can be reinvested back into the credit union, members can benefit from lower fees and more competitive rates on credit union products.
As Australia’s largest credit union, CUA certainly has a lot to offer members. Established back in 1946, the credit union has expanded over the years to provide a wide range of banking products and financial services to its members, while championing great causes and investing in the local community. So then, what do you need to know about CUA’s personal loans?
Unsecured Fixed Personal Loan
CUA offers an unsecured fixed personal loan and variable personal loan, as well as a secured car loan. Let’s start by looking at the CUA Fixed Personal Loan first.
- It has a fixed rate. With a fixed rate, the rate on this loan will remain the same throughout the life of the loan. This can make managing your finances easier, as you will always know what your repayment will be. It can also allow you to lock in a rate, knowing it will never increase, not matter what the market is doing elsewhere.
- It offers loans from $5,000 to $50,000. Whether you’re planning extensive renovations at home, or you want to take a little family trip interstate, you can borrow a little or a lot on your loan with CUA. Bear in mind, CUA will only approve a loan amount that it knows you will be able to pay back, typically based on your income, employment and credit.
- It keeps fees down. Being a credit union, CUA keeps fees low. On this loan, that means no ongoing fees to worry about, which can make for a more affordable repayment schedule. Check the terms for other fees before you apply, such as one-off establishment fees.
- It offers competitive rates. Again, as a credit union, CUA works to keep ongoing costs down for members by offering a lower rate. By choosing a loan with a lower rate, this could make repayments more affordable, while allowing you to pay off what you owe faster.
- It provides flexible repayment options. You can choose a loan term between one and seven years, giving you the time you need to pay it all off, while creating a repayment schedule you can afford. CUA offers further flexibility in this regard, by allowing you to choose monthly, fortnightly or weekly repayments to suit your income and budget.
- It allows for unlimited extra repayments. Unlike many other fixed rate loans, the CUA Fixed Rate Loan allows you to make extra repayments with no fee, helping you to pay off your loan sooner. If you do pay off your loan early, CUA will not charge a fee for early payout.
- It offers access to additional repayments via redraw. Should you need to redraw some or all of those additional funds paid into the loan, CUA allows for this with easy access via its redraw facility.
Is this loan for you?
If you’re looking for a fixed rate loan with plenty of flexibility, the CUA Fixed Personal Loan could be a great fit. It allows you to fix your rate, while also providing access to many of the flexible features usually only found on variable rate loans.
To be eligible for this loan, you must:
- Be at least 18 years of age
- Be an Australian citizen or permanent resident
- Be employed or receive regular income
- Not be or have been insolvent or bankrupt
- Have no past, present or pending claims against you
Aside from being a member of CUA (joining is free and easy), you will need the following to apply online:
- An email address and a contact number
- Your CUA Member number
- An Australian Driver’s Licence, Medicare or passport details
- Employment and income details
- Details of your assets, expenses and liabilities
Unsecured Variable Personal Loan
So, what does the CUA Variable Personal Loan have to offer?
- It has a variable rate. That means the rate applied to the loan may go up or down during the life of the loan, depending on factors such as the cash rate and market. If rates rise, your repayment amount will increase. If rates fall, your repayment amount will decrease.
- It offers loans from $5,000 to $60,000. This is the amount you can borrow online. CUA notes that larger and smaller amounts may be available when applying in-branch.
- It provides flexible repayment options. You can choose to repay the loan over one to seven years, with repayments paid monthly, fortnightly or weekly.
- It keeps costs down. Not only does this loan offer a low competitive rate, it also helps to keep ongoing costs down with no ongoing fees. As with most personal loans, you will pay an establishment fee, so check that and other applicable fees before you apply.
- It allows you to pay off your loan sooner. Offering you the opportunity to make unlimited free extra repayments, this loan allows you to pay off your loan sooner, while paying less in interest. There is also no fee for early payouts on this loan.
- It lets you access additional repayments. If you happen to need some of those additional repayments later on down the line, you can access them quickly and easily using the loan’s redraw facility.
Is this loan for you?
Why should you choose CUA’s variable loan over its fixed rate loan?
- You think rates may fall. With a variable rate personal loan, you may benefit from rate decreases over the life of the loan. This can be worth thinking about if rates are currently high.
- You can manage financially if rates rise. By choosing a variable rate personal loan, you have to be able to deal with rate rises should they come. It’s not a good idea to choose a variable loan with a repayment schedule you can only just afford, as there is the possibility repayments will increase alongside rates over time.
- You want to borrow up to $60,000. CUA allows for online applications up to $60,000 on its variable personal loan, but only up to $50,000 on its fixed personal loan. If you need more, you may be able to apply in branch – but only if you know you can afford to pay back what you borrow.
Aside from the above points, both the CUA Fixed Personal Loan and Variable Personal Loan offer many of the same appealing attributes. These include flexibility in repayments, low fees and competitive rates.
Buying a Car?
Both of the CUA personal loans we have discussed so far seem pretty flexible in both features and loan purpose. CUA doesn’t make any mention of what its personal loans can be used for, which means the credit union is likely pretty open minded. You could take a trip, do up the house, get married, or even consolidate your debt.
But what about buying a car? CUA actually has a personal loan designed specifically for car loan borrowers, offering a worthy alternative to potential car buyers. Here’s how it works.
- It is a secured loan. With the CUA Secured Fixed Car Loan, the car you buy is used as collateral against the loan. Lowering the risk for the lender, this type of loan can offer the following benefits to borrowers.Lower Rates: Secured loans typically offer lower rates than unsecured loans, as the lender reduces its risk by having the car as collateral.Easier Approval: While you will still need to meet CUA’s eligibility criteria, opting for a secured loan can make it easier to get approved, again due to the lower risk on the loan.As a secured loan, it does also mean the car you buy is at risk of repossession if you fail to repay the loan. This makes it especially important to only apply for a loan that you know you can pay back.
- It offers loan amounts ranging from $5,000 to $60,000 online. You may be able to apply for a larger loan up to $100,000 by applying in-branch.
- It offers repayment schedules over one to seven years. This allows you to pay off your loan quickly, should you want to, or opt for a longer term if that suits your budget better.
- It’s offered on new and used cars up to seven years old. For cars over seven years old, CUA offers borrowers unsecured fixed and variable personal loan options.
Much like CUA’s unsecured loans, this Secured Fixed Car Loan has no ongoing fees, no early payout fees, and unlimited fee-free additional repayments. There is, however, a Security Administration Fee to pay, which covers the administration costs associated with registering the secured vehicle.
Now you know more about the loans on offer, let’s highlight CUA’s best bits, so you can determine whether CUA is the right lender for you.
Interested in what CUA has to offer? Click through to CUA’s personal loan pages to find out all you need to know.
It is member-owned. CUA is run for the benefit of its members. As a CUA member and shareholder, you have the opportunity to shape how the credit union is run, by participating in its governance and asking questions about its management and financial performance. Active members also have a voting right at the Annual General Meeting (AGM).
It offers competitive rates and low fees. When comparing CUA personal loans against loans offered elsewhere, you may notice that as a credit union, CUA keeps things pretty competitive. By choosing a CUA personal loan, you could pay less in fees and interest, allowing you to pay off your loan faster.
It prides itself on its customer service. Another aspect of choosing a credit union such as CUA means benefiting from its excellent customer service. CUA offers members easy communication via CUA Direct, its Australia-based call centre, and through its 50-branch network across the country. Members can also manage their loan efficiently via CUA Online and the Mobile Banking App.
It is an award-winner. CUA must be doing something right. Alongside an array of other awards, the credit union has picked up the award for Australia’s Best Large Credit Union in the Mozo Experts Choice Awards three years in a row, from 2018 to 2020.